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The effect of scale on cost projections for a primary health care program in a developing country

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  • Over, Mead

Abstract

Accurate estimation of the recurrent costs of primary health care (PHC) activities is essential in light of the need for governments to assess whether and how these costs can be financed. This paper argues that expansion of the PHC activities will result in diseconomies of scale that are not captured by constant average cost projections of recurrent costs. An alternative estimation method which captures the effect of rising average unit costs is proposed with application of this method to data from the Republic of Niger. Results of the analysis show that the 'r-coefficient' (ratio of investment to recurrent costs) for PHC activities can double and costs can be 3 times larger after 12 years.

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  • Over, Mead, 1986. "The effect of scale on cost projections for a primary health care program in a developing country," Social Science & Medicine, Elsevier, vol. 22(3), pages 351-360, January.
  • Handle: RePEc:eee:socmed:v:22:y:1986:i:3:p:351-360
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    Cited by:

    1. Johns, Benjamin & Steinhardt, Laura & Walker, Damian G. & Peters, David H. & Bishai, David, 2013. "Horizontal equity and efficiency at primary health care facilities in rural Afghanistan: A seemingly unrelated regression approach," Social Science & Medicine, Elsevier, vol. 89(C), pages 25-31.
    2. Vassall, Anna & Compernolle, Phil, 2006. "Estimating the resource needs of scaling-up HIV/AIDS and tuberculosis interventions in sub-Saharan Africa: A systematic review for national policy makers and planners," Health Policy, Elsevier, vol. 79(1), pages 1-15, November.
    3. Benjamin Johns & Rob Baltussen, 2004. "Accounting for the cost of scalingā€up health interventions," Health Economics, John Wiley & Sons, Ltd., vol. 13(11), pages 1117-1124, November.

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